Growing a Franchise

The Ultimate Guide To Franchising Your Business — Phase 2: Creating the Franchise System — How to Create a Pilot Program

The Ultimate Guide To Franchising Your Business — Phase 2: Creating the Franchise System — How to Create a Pilot Program

Before launching a franchise, business owners should take the time to test their concept, build strong systems and validate their model to give future franchisees the best chance at success.

Before launching a franchise, most founders are faced with a big question: Is this business truly ready to be replicated? For many, the answer lies in how well the original concept performs, not just as a business, but as a system that others can follow. Creating a pilot program or testing the model internally can make all the difference between smooth franchise expansion and a rocky rollout.

Some Businesses Start Testing Their Model Internally Before Franchising

Testing doesn’t always mean creating an official pilot location. Sometimes, the test is in how the founder runs multiple units themselves before ever handing the reins to someone else. This can be even more valuable. It gives firsthand insight into how the model scales, what breaks down when more locations open and where improvements are needed.

Caring Senior Service was started in 1991, and the founder and CEO, Jeff Salter, operated as a single owner for his first decade of business,” said Del Salinas, director of franchise development. “First, we got up to seven locations before we started franchising in 2001. It was tested and proven, operating multiple locations with one owner. This made us able to provide a structure for what was needed to execute the model.” 

That kind of internal testing often creates a solid foundation before you bring franchisees into the mix. If you can replicate your success in more than one location while still staying profitable, that’s a good sign you're on the right track.

Recognizing the Right Time To Franchise Isn’t Always Obvious

There’s no blinking neon sign that tells you when it’s time to franchise. For many brands, it’s a mix of demand and repeatable success. Maybe customers started asking if they could open one in their hometown. Or maybe operations became so streamlined that the idea of sharing the playbook started to make sense.

“We knew the business was ready to be franchised once we were operating at a high level with multiple locations,” Salinas said.

Ultimately, a business is ready when the model works without you having to be in the room every day. That kind of operational clarity means it’s teachable and franchisable.

Early Steps Matter When Building a Franchise-Ready System

The biggest challenge in franchising is pulling everything out of your head and turning it into something someone else can follow. That means building manuals, writing out processes, documenting training procedures and understanding what kind of support new owners will really need in their first year.

“We tested that model in multiple locations,” Salinas said. “It started in Texas, and we had offices all over Texas. Texas is quite big, so we had hundreds of miles in between offices, and were able to show how having the right people in the right places and doing the right things would allow the business to become successful and ultimately profitable.”

It also means simplifying. Systems that work when you’re hands-on might fall apart when someone new is at the wheel. Making things intuitive, from technology to daily checklists, helps your franchisees focus on running the business, not figuring it out.

Skipping a Formal Pilot 

Some founders skip the formal pilot stage because they’re eager to grow or assume their single location’s success will carry over. But looking back, many will say they would’ve taken more time to stress-test their systems, not just for operations, but also for onboarding, training, marketing and vendor relationships.

"It wasn’t a formal pilot. It was more of an execution of the business — the business model and business plan being carried out at a high level,” Salinas said. “In hindsight, there are definitely things we would have done differently. There always are. Most of the time, when you're just starting out, it’s very much a ‘give it a go and see if it works’ approach."

Even one test location outside your home market can highlight where things break. That kind of feedback is invaluable and often saves time and money in the long run.

Taking the Time To Test Your Model Sets You Up for Success

Don’t rush. That’s the short version. Just because your concept is working doesn’t mean it’s franchise-ready. Testing it in different environments, with different managers and, ideally, outside your immediate circle, gives you real perspective.

“If the right people are in the right seats doing the right things, you want to get that same result," Salinas said. "It’s very much about letting go and letting other people run the business, but then also validating. Is the model being executed properly? Are the right pieces in place to support it when it’s not? As a franchisor, you have to provide the system and process — plus the support and tools — and then keep showing up with instruction when there are questions or challenges."

Talk to others who’ve done it. Learn from their mistakes. And don’t underestimate how much work goes into the early systems. A strong pilot program gives you confidence and gives your franchisees a better chance at success from day one.

Pilot Program — Key Takeaways and Next Steps:

  1. Test in multiple company-owned locations.
  2. Evaluate systems/processes—not just profits.
  3. Measure consistency in sales/margins/experience.
  4. Identify support gaps and refine materials.
  5. Document learnings into the playbook.

Growing and selling franchises is difficult. No great franchise did it alone. Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.

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Victoria Campisi

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Victoria Campisi

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